14 NSW Masonic Club October 2018 ANNUAL REPORT 2018 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2018 Retained Earnings $ Capital Reserve $ Asset Revaluation Reserve $ Financial Asset Reserve $ Total $ Balance as at 30 June 2016 5,372,858 1,319,388 18,054,177 (9,144) 24,737,279 Profit attributable to Members 514,784 - - - 514,784 Transfers - - - - - Total other comprehensive income for the year - - 13,403,860 (12,605) 13,391,255 Balance as at 30 June 2017 5,887,642 1,319,388 31,458,037 (21,749) 38,643,318 Profit attributable to Members 537,140 - - - 537,140 Transfers - - - - - Total other comprehensive income for the year - - - 8,480 8,480 Balance as at 30 June 2018 6,424,782 1,319,388 31,458,037 (13,269) 39,188,938 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2018 Note 2018 2017 $ $ CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Members and guests 5,233,140 5,323,622 Payments to suppliers and employees (4,659,048) (4,167,319) Rent received 247,972 208,295 Dividends received 16,242 12,425 Interest received 82,902 63,348 Income tax payments (82,252) - Net cash provided by operating activities 838,956 1,440,371 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property, plant and equipment - - Payments for property, plant and equipment (379,561) (217,977) Proceeds from sale of investments 24,481 58,630 Payments for investments in listed securities (109,845) (155,537) Funds (invested in)/withdrawn from term deposits (200,000) (1,200,000) Net cash provided by/(used in) investing activities (664,925) (1,514,884) Net increase/(decrease) in cash 174,031 (74,513) Cash and cash equivalents at beginning of the financial year 340,658 415,171 Cash and cash equivalents at end of the financial year 5 514,689 340,658 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 The financial statements cover the New South Wales Masonic Club (the “Club”) as an individual entity, incorporated and domiciled in Australia. The Club is a company limited by guarantee. The financial statements were authorised for issue on 3 October 2018 by the directors of the Club. NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Preparation These general purpose financial statements have been prepared in accordance with the Corporations Act 2001 and Australian Accounting Standards – Reduced Disclosure Requirements and Interpretations of the Australian Accounting Standards Board. The Club is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless stated otherwise. The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The amounts in the financial statements have been rounded to the nearest dollar. Accounting Policies (a) Income Tax The income tax expense (revenue) for the year comprises current income tax expense (income) and deferred tax expense (income). Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using applicable income tax rates enacted, or substantially enacted, as at the end of the reporting period. Current tax liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered from) the relevant taxation authority. Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well as unused tax losses. Current and deferred income tax expense (income) is charged or credited outside the profit and loss when the tax relates to items that are recognised outside the profit and loss. Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts have been fully expensed but future tax deductions are available. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss. Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at the end of the reporting period. Their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability. Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised. Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities, where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled. (b) Inventories Inventories are measured at the lower of cost and net realisable value. (c) Property, Plant and Equipment Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses. Property Freehold land and buildings are shown at their fair value (being the amount for which an asset could be exchanged between knowledgeable willing parties in an arm’s length transaction), based on periodic valuations by external independent valuers, less subsequent depreciation for buildings. Increases in the carrying amount arising on revaluation of land and buildings are credited to a revaluation surplus in other comprehensive income. Decreases that offset previous increases of the same asset are charged against revaluation surpluses directly in other comprehensive income; all other decreases are charged to the profit and loss account. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. DIRECTORS’ REPORT 2018 continued NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018